ELSS have not been able to generate adequate investor interest this year due to lackluster returns
|
Scheme Name |
3 Year CAGR Returns as on 15 March 2011 |
|
HDFC TaxSaver (G) |
13.0763 |
|
Fidelity Tax Advantage (G) |
12.8940 |
|
ICICI Pru Tax Plan (G) |
12.5622 |
|
Sahara Tax Gain (G) |
10.9097 |
|
Taurus Tax Shield (G) |
10.8784 |
|
Franklin India Taxshield (G) |
10.6184 |
|
Reliance Tax Saver (ELSS) (G) |
10.5005 |
|
HDFC Long Term Advantage (G) |
9.7088 |
|
Religare Tax Plan(G) |
9.6355 |
|
HSBC Tax Saver Equity (G) |
7.6975 |
|
DSPBR Tax Saver (G) |
6.9441 |
|
Sundaram Tax Saver (G) |
6.7954 |
|
L&T Tax Saver (G) |
4.1815 |
|
ING Tax Savings (G) |
3.7621 |
|
SBI Magnum TaxGain'93 (G) |
3.1474 |
|
UTI ETSP (G) |
3.0876 |
|
Birla SL Tax Relief '96 (G) |
2.7285 |
|
Birla SL Tax Plan (G) |
2.3949 |
|
LICMF Tax Plan (G) |
1.3377 |
|
Kotak Tax Saver (G) |
1.3322 |
|
DWS Tax Saving (G) |
-1.6580 |
|
BNP Paribas Tax Adv (G) |
-2.6556 |
|
Escorts Tax (G) |
-7.6559 |
|
Source: Accord | |
Mumbai: The mutual fund industry is not expecting to see huge inflows in ELSS even as the financial year comes to an end. This in spite of the fact that fund houses have offered upfront brokerage in ELSS to distributors in the range of 2 % to 5.5 % to woo investors as reported by Cafemutual first.
The primary reason cited by fund officials is the lackluster performance posted by ELSS, especially due to the market crash of 2008 has put off investors. “The three year returns of ELSS schemes are more or less on par with debt schemes even though investor expects higher returns from them. Another factor could be the tax benefit which will vanish once DTC comes in 2012,” said a CEO of a large fund house.
“Although we are trying our level best to get more investors in ELSS, it’s a difficult job,” said a marketing head of private sector mutual fund.
Adds a sales head of a bank sponsored mutual fund “the response has been muted so far. Last three year returns of ELSS have not been encouraging.”
According to AMFI data, the industry saw Rs 348 net inflows in ELSS during February 2011. During January these funds collected Rs 245 crore.
In the similar period January to March 2009, these funds mopped up Rs 2137 crore in January, Rs 284 crore in February and Rs 547 crore in March.
